Last week a colleague asked me if we were in the middle of a tech bubble and I immediately said “no way.” He theorized that five years from now things will have settled down and tech would not be getting the attention it gets now. I fumbled through a response and thought to myself that I needed to better articulate why we aren’t in a tech bubble.
Here’s why the tech renaissance is going to last:
- Fast internet access is prevalent everywhere — both wired and wireless
- Widespread smart phone adoption means most people have a powerful computer on their person at all times
- Costs to build and deploy a web/mobile app have gone down significantly due to open source, cloud computing, and new technologies
- Startup funding, especially outside of Silicon Valley and New York, has been relatively steady, if not declining, meaning we aren’t seeing an unsustainable level of investment like in the late 1990s
- Development of startup communities is more well understood, especially the concept of startup density, serendipitous interactions, strong networks, and more
- Methodologies like the lean startup and customer development help de-risk part of the equation
- Software-as-a-Service (SaaS) is a real phenomenon driving down the cost of IT while improving adoption and effectiveness
Overall, we’re only scratching the surface with how the internet and mobile are changing the way people work and live. We’re not in a tech bubble and the future is bright.
What else? What are your thoughts on a current tech bubble?